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Judge Denies Elon Musk’s Request to Stop OpenAI’s For-Profit Conversion

Judge Denies Elon Musk’s Request to Stop OpenAI’s For-Profit Conversion

March 5, 2025 By Peter Leave a Comment

Elon Musk and Sam Altman, co-founders of OpenAI, have a history of rivalry. Musk's attempt to block OpenAI's transition to a for-profit entity has been rejected by a judge.

Legal Battle Unfolds

On Tuesday, a judge dismissed Musk's request for an injunction to prevent OpenAI from becoming a for-profit organization, deeming it an uncommon and extraordinary plea. Nevertheless, the court is willing to expedite other aspects of the lawsuit, with a trial potentially set for 2025.

Fast-Track Trial

The court is prepared to fast-track a trial to address contract-based claims related to the case, citing the public interest as a key factor. While Musk and his co-plaintiffs are gearing up for their day in court, the trial may not commence until 2027 or 2028.

Expansion of Lawsuit

In November, Musk's legal team filed an updated lawsuit against OpenAI, seeking a preliminary injunction in response to reports of the organization's shift towards a conventional corporate structure. The lawsuit also includes allegations of antitrust violations, with Microsoft being added as a defendant.

Antitrust Allegations

Musk's lawyers argue that OpenAI's close relationship with Microsoft unfairly tips the scales in favor of the company, stifling competition in the AI sector. This legal move is part of Musk's ongoing efforts to challenge OpenAI's trajectory and operations.

Continued Conflict

The legal battle between Musk and Altman, stemming from their differing visions for OpenAI, has been ongoing since Musk's departure from the organization in 2018. Musk's recent failed attempt to take control of OpenAI for $97.4 billion underscores the deep-seated disagreements between the parties.

Altman views Musk's legal actions as an obstacle to OpenAI's progress, emphasizing the need for the organization to maintain its original mission as a safety-focused entity. The clash between the two tech titans continues to unfold in the legal arena.

Representatives for Musk and OpenAI have yet to comment on the recent developments in the lawsuit.

Source: Business Insider

—————————————————————————————————————————————
By: ewebb@insider.com (Effie Webb)
Title: Judge Denies Elon Musk’s Request to Stop OpenAI’s For-Profit Conversion
Sourced From: www.businessinsider.com/elon-musk-openai-lawsuit-for-profit-block-trial-sam-altman-2025-3
Published Date: Wed, 05 Mar 2025 13:01:06 +0000

Related posts:

Sam Altman Denies Elon Musk’s Claim About OpenAI Investors Elon Musk’s Legal Battle with OpenAI and Cofounders Explained Key Steps OpenAI Must Take to Transition to a For-Profit Company Elon Musk and Sam Altman: The Founders of OpenAI and Their Feud

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